CHAPTER 1

INTRODUCTION
Manufacturing sector is the strength of any country and it is one of the key drivers of
employment and growth for any economy. It gives productivity and employment to
other sectors and strengthens the other sectors like agriculture and service sector.
Agriculture has been the main occupation of the India. But our forefathers have given
strong foundation for modern and good industrial base. The history of textiles in India
dates back to around 3000 BC where the use of mordant dyes and printing blocks was
prevalent. After independence 5 year plans were formulated for the development of
country’s industrial sector and developed to build enough infrastructures for fast
industrialization. The textile sector is one of the manufacturing sector which gives
growth to other sectors and presently one of the largest and important industries in
Indian economy in terms of output, export, and employment creation. The textiles
industry plays a crucial role in contributing to employment generation, industrial output
and export earnings. The textile and cloth manufacturing sector has been significant
and dynamic element of the economic growth. The textile industry gives huge potential
for development of employment opportunities in the agricultural, industrial, organized
and decentralized sectors & rural and urban areas, particularly for women, as a result,
the growth and development of this sector has a direct contribution in the development
of the economy. It includes spinning, weaving and finishing, and the three functions are
often undertaken in integrated plants. Rural population is moving towards urban areas
to search the jobs and livelihood. Urban jobs fetch them income and better livelihood
in the cities. Textile industry is also witnessing such a migrating labour from villages
to urban places like Belagavi city in search of textile jobs. Besides that, due to growing
population and per capita income in the country the demand for clothes and other textile
products has been constantly increasing. And hence, the textile industry is witnessing
the growth and demand for clothing as well as growth of cloth industry.

The Indian textile industry has four main sectors: (a) Organized Mill Sector, (b) Power
loom Sector, (c) Handloom Sector and (d) Khadi and Cottage Industries. The distinction
among these appears in respect of comparative sophistication and factor intensity, in
methods of production, quality and quantity of output produced in- each of them (Saha,
1982). After 1950, India developed a modern textile industry with cheap labour, access

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to British machinery and well developed trade tradition. India has a diverse and rich
textile tradition. Contemporary Indian textile not only reflects the country’s rich and
splendid past, but also caters to the demands of the modern day. In fact today India is
one of the world’s leading manufacturers of manmade textiles (Manonmani, 2013). The
current global apparel market is worth US$ 1.7 trillion and it constitutes around 2% of
the world’s GDP. The global apparel market size is expected to reach US$ 2.6 trillion
in 2025 growing by 4% projected rate.

The major growth drivers of the global apparel market will be the developing
economies, mainly China & India, both growing in double digits. The textile and
clothing industry has high-value added sector where research and development (R&D)
and design are important factors. Material technology is an important factor, so R & D
is a significant factor in textile industry. The development of the textile industry in the
world over the last 40 years is a typical example of production that has undergone major
changes, which some would even call drastic, in terms of organization, production
structure, technology and sales methods. (Corovic, Jovanovich and Ristic, 2013). More
than 40% of the world’s production of clothing and textiles is in China and India.

1.1 Power loom Industry

The textile industry is one of the most important sectors of the Indian economy and one
of the main sources of foreign exchange earnings for India. As per the textile ministry
annual report 2017-18, the Indian textile industry contributed 7% of industry output,
2% of India’s GDP, and 15% of India’s export earnings. Around 45 million people
employed directly. This industry holds importance from the employment point of view
as well. It is the second highest provider of employment after agriculture. The Indian
textiles industry is one of the oldest industries in India having progress from a
household small scale industry to one of the largest in the world with an enormous raw
material and textiles manufacturing base. The exceptionality of the textile industry that,
it lies in its strength in both the mill sector and handloom industry. In rural and semi
urban area traditional sectors like handloom, small scale power loom units and
handcrafts are the major source of employment generation. Research firm Technopak
in its study on textiles states that in terms of both the domestic market and exports, the
size of the industry is projected to grow at a compounded annual growth rate of 9.5 per
cent to reach $223 billion by 2021.

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Government support for transformation of the industry with a meticulous focus on
closing the gaps in the textile value chain appear to be promising for the industry.
Factors such as growth in e-commerce, changing lifestyles and growing income of the
people have added to the development prospects of the textile industry. To promote the
textile industry Indian Government has taken many initiatives with structured and
organized set up with ministry of textile. Office of the textile commission and office of
the jute commission are working to strengthen the industry. Statutory bodies like
Textile Committee (TC), National Jute Board (NJT), The Central Silk Board, National
Institute of Fashion Technology (NIFT) are functioning with ministry of textile.
Registered societies Central Wool Development Board, Sardar Vallabhbhai Patel
International School of Textiles and Management (SVPISTM) are supporting this
sector. Advisory boards like All India Power loom Board (AIPB), Cotton Advisory
Board (CAB), Jute Advisory Board (JAB), and Handicrafts Advisory Boards (HAB)
are supporting the industry to strengthen the activities of textile industry.

Figure No. 1 Government support to Indian Textile Industry

New National The draft policy has been discussed further with concerned
Textile Policy stakeholders. The revised draft of the New Textile Policy is in the
process of being approved by the Government.
Technology Up- The Government of India established Technology Up-gradation
gradation Fund Scheme (TUFS) in 1999 to enable firms to access low interest
Scheme loans or technology up-gradation. Handlooms will now be
covered under the TUFS.
Scheme of The Scheme of Integrated Textile Parks is one of the flagship
Integrated Textile schemes of the Ministry of Textiles. It aims to assist small and
Parks medium entrepreneurs in the textile industry by providing
financial support for world class infrastructure in the parks. 13
new textiles parks have been approved and will receive a grant to
the extent of Rs. 520 crores from the Government for the
infrastructure development. They are estimated to bring in private
investment of about Rs. 3,240 crores and generate direct
employment.
Boosting Exports With a vision to create an export friendly economy, the
Government has introduced several initiatives such as duty free
entitlements, 24/7 customs clearance facilities, etc.

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Foreign Direct The Government has allowed 100% FDI in the textile sector
Investment (FDI) under the automatic route since 2016. The Ministry of Textiles
Policy has set up an FDI Cell to attract FDI in the sector with the
objective of providing assistance and advisory support, assisting
in identifying foreign partners etc.
Promotion of A new Rs. 427 crore scheme has been launched to popularize the
Technical Textiles use of Geotechnical textiles in the North East States. The scheme
empowers the administrative machinery to adopt this technology,
promote establishment of the supply chain and set up
manufacturing units of Geo-tech.
Deepening reach The E-commerce initiative with Flipkart will strengthen the
of Handloom existing Primary Weaver Cooperative Society. It is expected to
products assist entrepreneurship taking up production and supply directly
to the customers. Fashion shows such as Lakme Fashion Week
have also helped to showcase the vibrancy and magic of Indian
weavers and crafts.
Handloom Mega Development of Tussar handloom products like sarees, dress
Cluster Scheme material and a wide range of home furnishing fabric for exports
typical to Bhagalpur in Bihar has been initiated under the Mega
Cluster Scheme. Another mega cluster is being developed at
Trichy, Tamil Nadu. Over 15,000 handloom weavers will
directly benefit from these two clusters.
Linking Textile The process for linking textiles with tourism has been worked out
with Tourism in consultation with the Ministry of Tourism. Guidelines have
been circulated to state Governments in January 2015. The
development of Raghurajpur crafts village in Orissa as a
destination village at a project cost of Rs. 10 crore has been
approved in January 2015.
Integrated Skill The scheme was introduced to impart employable skills to works
Development in different segments of the industry. The objective was to train
Scheme approximately 26.75 lakh persons over a span of 5 years. The
Ministry is also in the process of expanding the implementation
of the scheme in the Public-Private Partnership mode. With a
vision to encourage and train the youth of Jammu and Kashmir
for fashion design and thereby generate employment
opportunities the Government has increased its financial support
for setting up an NIFT centre in Srinagar from 50% to 90%.
Source: Annual Report analyzed in ASSOACHAM

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According to the above figure No. 1 we can see that Government of India is trying hard
to support and boost the country’s textile industry by its various policies and
programmes for the sector. The Government is framing new national textile policy in
which various provisions are added or incorporated after discussing with concerned
stakeholders. At the same the Government is helping the sector in terms of financial
assistance for the technological up gradation. The ministry of textiles has launched one
of the flagship schemes for integrated textile parks and several initiatives to boost the
exports. The Government has allowed 100% FDI in the textile sector since 2016 for the
development of the sector in the country.

According to Indian Technical Textile Association while the world over, the share of
technical textiles among all forms of textiles is 65 per cent, its share in India is only 10
to 15 per cent. This specifies the enormous growth in this sector, which is purely based
on technology and innovation.

Indian Power loom Industry: Weaving sector is one of the important sectors of textile
industry. Even in employment generation, there are 44.18 lakh persons employed with
this industry. The readymade products are largely dependent on the weaving industry
to meet their fabric requirements. Weaving has been since very old times, as literary
sources of the medieval period tells about variety of fabrics produced and also there is
an evidence of taxes that were payable on looms, yarn and dyes. In the British rule, this
industry suffered a lot due to policies and mill made fabrics. After the independence the
Government has taken initiative to strengthen the weaving industry. Weaving sector
had progressively increased its share in production and exports. In India historically we
got the weaving industry started in the year 1904. However, till the outbreak of World
War I, there was not much growth in the number of looms. In this world war the
shortage of cloth in the country, because of this, it gave a momentum to the growth of
weaving industry. The increasing demand for ‘Swadeshi’, the cloth industry
encouraged several entrepreneurs to set up small scale weaving units in different centers
through the acquisition of discarded looms from the textile mills. It has seen mushroom
growth of weaving industry in Maharashtra, Gujarat, Madhya Pradesh, Bihar, Punjab
and Andhra Pradesh and Karnataka.

The meaning of power loom industry is, the handloom industry, which has applied
mechanical power with a view to removing tedious and unproductive operations is

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called power loom industry. According to Report of Power loom Enquiry Committee,
Government of India, Ministry of Industry, Power loom means, "a loom which is
worked by power as defined under clause (g) of Section 2 of the factories Act 1948.
Power means, electrical energy or any other form of energy which is mechanically
transmitted and is not generated by human or animal agency". The power loom is
mechanized version of handloom and automatic loom with motor drive. All the
operations like dyeing, sizing, hand warping, prin-winding and weaving are similar to
the handlooms but weaver is relieved from the operation from hand. Power loom is
nothing but modified form of handloom.

Weaving sector is considered to be highly production oriented and employment

oriented. The Government makes popular announcements in support of these industries
in their planning documents. But the power loom sector gets a poor share in the
budgetary allocations. The power loom industry produces variety of fabric. This Power
loom fabric effectively competes in the international market and contributes extensively
in the export earnings of the country.

1.2 Power loom Industry of Belagavi District

Belagavi district is in the northern part of Karnataka state. There are 10 talukas, having
18 municipalities in the districts, comprising of 1270 villages, 485-gram panchayats
and 22 towns. It is the largest district in size in Karnataka state.

Geographically the district can be divided into two regions, viz. transitional belt along
with Western Ghats and Deccan plateau. The transitional belt along with Western Ghats
is about 25 miles from Chikodi to Khanapur in north-south direction. Khanapur,
Hukkeri, Belagavi, Chikodi talukas come under transitional belt. In Khanapur taluka, a
high percentage of area is covered by a thick monsoon forest.

The Deccan plateau comprises of Gokak, Athani, Bailahongal, Soundatti and Ramdurg
talukas, which has topography of wide villages that are caused by Deccan plateau by
Krishna River and her various tributaries in the area.

Belagavi district is the largest district in size in Karnataka state. The geographical area
of the district is 13,641 Sq.kms, accounting for 6.99% of state territory. The population
of the district is 4,214,505 as per 2001 census. The district has the literacy rate of
64.21%. The agricultural working population amounts to 68.91%.

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The newspaper reports reveal that according to 2011 census the population of the
district is 4778439. The density of population is 356 per sq km. The literacy level in the
district is 73.94% and sex ratio is 969 females per 1000 males.

1.3 Belagavi Saree

The word ‘saree’ [20] is derived from Sanskrit word 'sati', which means “a strip of
cloth”. The origin of the word saree is from the Prakrit (a language spoken in the
Buddhist era) word ‘sattika’. This progressed into the Prakrit 'sadi' and was later
anglicized into 'saree' (pronounced as sa-ri) [21]. The word “sattika” is mentioned in
Buddhist literature, meaning women’s attire. Saree is an unstitched long piece of cloth,
which is draped in various styles in various parts/regions across Indian continent, and
its length varies from 4 yard to 9 yards. The history of this famous Indian ethnic piece
of clothing is quite exciting and shows the fulfillment over thousands of years. The first
mention of Saree was found in Mahabharata in 400 BC, when Lord Krishna protected
“Draupadi”, wife of Pandavas by blessing her with a saree that did not end. The 1st
century AD saw the Sari in its initial form and the records/witnesses are found in the
sculptures from that period. It was a drapes garment with a veil. History also articulates
that saree was worn by during famous battles fought by the heroines like Queen Jhansi
Laxmibai and Belawadi Mallamma (around 1850 AD).

Mention the name, Belagavi anywhere in India and people would immediately recall
the lingering border row between Karnataka and Maharashtra from the post-
Independence days which remains unresolved leaving a festering sore in ties between
the two states. But ask a textile industrialist in China about Belagavi and he would shine
expressive about the Shahpur saree (Belagavi Saree), the intricate weaves which have
left generations enthralled and made the saree a household name across the world. What
makes this industry so amazing is that those engaged in it, have been able to innovate
and adapt to changing technology and designs, making sure the saree continues to
remain a much sought-after product anywhere in the world.

Naushad Bijapur, a saree weaver in Belagavi explores the tale of the Shahpur saree and
how it has been able to stand the test of time when many other native wonders have
vanished into the Belagavi has been receiving quite the royal treatment over the last
decade with successive Governments splurging on developing it into the state's
unofficial second capital but its success story does not end with this. In fact, if we ask

7
textile industrialists from China, Turkey, Bangladesh and their neighboring countries
about Belagavi, chances are they will know little about the border row and much more
about the Shahpur sarees it produces.

Starting from plain weaves, the weavers make various kinds of sarees, including what
they call a butta saree, jakor saree, polyester saree, pure silk saree, and cotton saree.
The sarees are made based on orders of dealers and agents, who market them.

According to Mr. Parashuram Dhage [1], secretary of Belagavi District Power Loom
Association, all these traditional sarees are cost-effective as weavers sell them for Rs
200 to Rs 2,000 a saree depending upon its quality. The dealers, who spend more on
the packaging and display, ask for more. Although these sarees are produced in
Khasbag and Wadgaon, they have come to be known worldwide as Shahpur sarees
because the dealers, who market them, hail from Shahpur,”

A 100-year-old industry in the city, its weavers located largely in the Khasbag and
Wadgaon regions produce thousands of Shahpur sarees unique in design and like no
other variety in the country that are not only popular in local markets, but also in many
Asian countries like Sri Lanka, Bangladesh, Singapore, Malaysia and China, here they
are exported.

Amidst a thousand new clothing designs and fast evolving tastes, the saree will continue
to endure and entice women who know that they can never get over its charming appeal.
And so, will the Shahpur saree, for its stunning hues and twirls are difficult to replicate
and few can pamper the feminine instincts like it does.

Varieties of Sarees produced in Belagavi: In Belagavi, varieties of fancy sarees are

manufactured starting from plain weaves, the weavers make various kinds of sarees,
and some of them are:

1. Butta saree

2. Jakor saree

3. Polyster saree

4. Pure silk saree

5. Cotton saree

6. Zari saree

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 7. Rich Pallu Saree

8. Nauvari Mastani Saree

As per the information given by Mr. Manjunath Dhage, owner of one of the Belagavi
saree manufacturing unit, on an average 4, 50,000 to 5, 00,000 sarees are manufactured
by the power loom units of Belagavi in one month. Following table throws light on the
production and consumption of Belagavi Sarees. Around 66, 50,000 Belagavi Sarees
are consumed every year and produced in the study area. it shows the market size of
the Belagavi Sarees in general.

Table No. 1 Year wise Production and sale of Sarees in Belagavi

Production of Sarees Sale of Sarees (in

Year
(in Lakhs) Lakhs)

2013 16,27,000 14,64,300

2014 18,44,000 17,51,800

2015 25,40,000 24,13,000

2016 37,95,000 34,15,500

2017 45,60,000 43,32,000

2018 53,56,000 48,20,400

2019 70,00,000 66,50,000

Source: -Primary Data collected by the Researcher

Marketing of Belagavi Sarees

Marketing of Belagavi Saree is happening through a localized channels and agencies.

There are no organized distribution channels or procurement channels in the study area.
Sale of the finished goods is happening through personal links and middlemen
established in the field. Such middlemen are also non-registered firms and dealing
through unorganized marketing channels. Beside that there is lack of awareness about
marketing networking and advertisement for the sarees among the weavers in the study
area. The saree weavers in the study area sell 90% of the sarees to middlemen i.e.
‘Marwadis’ and remaining 5% to 10% of the sarees will be sold directly to the

9
customers in sales or exhibitions. Middlemen i.e. ‘Marwadis’ inform the saree weavers
to produce and supply a greater number of sarees from October to May every year as
there will be huge demand for the sarees during marriage season and festival season.

They have no option other than middlemen i.ee ‘Marwadis’ for the sale of their sarees
as more than 95% of the saree weavers in the study area do not have showrooms to sell
sarees manufactured by them. At the same time, they are absolutely unaware about
marketing activities such as marketing networking, marketing channels, customer
feedback, market research etc.

According to the above table no. 1, we can conclude that out of total number of sarees
produced; more than 90% of the sarees will be sold every year in the study area. Less
than 5% of the sarees will be returned by the clients due to defection in designs or
products. There is a regular sale because all the power loom units in the study area work
for middlemen i.e. Marwadis. These Marwadis provide raw material and designs
according to which power loom owners manufacture the sarees and give back to the
same Marwadi’s and receive the payment. Because of this setup between middlemen
and power loom owners of the study area, there is no sales force or marketing activities
exist in the study area as such.

1.4 Challenges in the production and marketing of Belagavi Sarees

Saree weavers of Belagavi district are experiencing varieties of challenges in

production and marketing of sarees. The production and marketing of sarees in the
Belagavi district is facing many challenges such as insufficient power supply, non-
availability of skilled labours, and demand in the increase of salaries by laours, lack of
awareness about branding or marketing networking, absence of marketing channels,
Government policies etc. These all obstacles cause low productivity, underutilization
of production capacity and poor quality of sarees. These challenges in production create
in turn many challenges in the marketing of sarees.

The following are few notable challenges in production faced by the saree
manufacturers are discussed as below:

(i) Raw material availability and quality

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The basic and foremost challenge of saree manufacturers in India is inadequate raw
material. The supply of adequate quantity and suitable quality of raw material at
reasonable cost is a challenge of crucial important for saree weavers in Belagavi
because in the production of sarees, the cost of raw material alone comprises about 80%
to 90% in the production of sarees. The major raw material for saree is yarn.

The power loom units are not able to get the required raw material in the required
quantity at rational price. The prices of raw material always fluctuate and always shows
upward trend due to less supply in the market and artificial scarcity created by the
vendors to enjoy more profits.

Due to less supply the prices of raw material are increased [2] but on the other hand
the prices of final product i.e. sarees do not increase compared to the increase in the
prices of raw material. Increase in the prices of raw material result into under costing
of final product i.e. saree which lead to losses to the saree manufacturers.

Most of the saree manufacturers of Belagavi district approach the local vendors for their
raw material who are so united and create artificial scarcity of raw material and increase
the prices purposely. The saree manufacturers purchase the raw material from the local
vendors on credit basis because of which they should agree to buy at higher prices even
when they are not willing to pay high prices for raw materials.

Often, the prices of raw material show increasing trend, on the other hand the prices of
final product i.e. saree show decreasing trend. The saree manufacturers of Belagavi
district have no union to control the prices of raw materials required for them. At the
same time the Government also does not have control on the prices of raw material
which result in to increase in the prices of raw material in the market.

The quality of raw material available with the local vendors is not of that good quality
to compete with the quality of products produced by mill sector products.
Disappointment of suitable supply of quality raw material//yarn at rational/reasonable
price is the regular challenge for the saree weavers because of which they are not able
to produce desired quality products and unable to compete with organized sector.

Non-availability of raw material/yarn [3][4] [6[on time and the poor quality of raw
material//yarn together have an adverse effect on the production and lead to under-
utilization of existing production capacity by saree weavers in the study area, specially

11
by the smaller power loom units. The scarcity of required quality raw material/yarn
leads to unused capacity of production, low production, inability of demand and
ultimately losing the orders/customers and incurring loss.

Raw material importing has become so costly due to appreciation in the value of US
Dollar against domestic currency. The Governments of raw material (yarn) exporting
countries are imposing higher rate of tariffs due to which the prices of raw material is
increasing and resulted in the higher production cost.

The fluctuating prices of raw materials [10] are one of the biggest headaches for the
saree weavers as it is leading to increase in the cost of production of sarees. At the same
time there is no much increase in the selling price of final product as they cannot
compete with branded sarees. Because of this saree weavers are facing financial
problems. The lack of the Government control is major reason for fluctuation in the
prices of raw materials and weavers are exploited by the suppliers in the market.

It is found during the survey that there is a persistent shortfall of the supply of raw
material in the power loom sector of the study area i.e. Belagavi district for the saree
manufacturing. At the same time, it is found that Belagavi saree weavers in the study
area are facing the problem of fluctuating prices of raw material frequently and inferior
quality of yarn.

(ii) Incompetent Production infrastructure

The production infrastructure of power loom units who manufacture sarees is very poor
in the study area. The working conditions so poor that it is affecting the productivity of
the units and health of the workers who are working in the power loom units.
Infrastructural and technological issues [5] are very crucial in power loom industry
as they influence the business activities the most.

The production premises of power loom units are lacking basic infrastructure facilities
such as ventilation for lights, exhaust fans for to exclude dust and fumes. There is no
regular cleaning, basic hygienic facilities and health and safety measures in the
production premises. The production places are full with dust and lack of proper
layouts. Few of the power loom units are not connected by good roads because of which
they are facing the transportation problems.

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Most of the power loom units depend upon the old and outdated technology [7] [8]
and equipments. In Belagavi district, most of the saree weavers are having old plane
looms. The speed and productivity of these old plane looms is too lower when we
compare it with modern looms such as shuttle less, automatic or semi-automatic looms.
In all the aspects plane looms are obsolete compared to modern looms.

The saree weavers in the study area are working with too old looms which are outdated
long back. Due to use of old looms they are unable to produce quality products. Those
old looms are consuming more time and wastage is more as compared to modern looms.
At the same time the productivity of old looms is too less compared to modern shuttle
less, automatic or semi-automatic looms because of which saree weavers in the study
area are unable to fulfill their orders on time and losing the orders sometime.

Saree weavers can able to produce 1—2 saree/s a day by plane looms, on the other hand
it’s possible to produce 3—4 sarees by using automatic or shuttle less looms. (The
weavers can produce 80 meters of cloth/saree per day by using plane looms whereas
they can produce 500 meters of cloth/saree per day by using automatic looms and
shuttle less looms can produce 800 meters of cloth/saree per day).

It is found that majority of the Belagavi saree weavers do not have separate production
premises as they have started their business in their living houses by installing fewer
number of power looms. It shows that they are lacking competent production
infrastructure facilities. Majority of the saree weavers are using plain looms which are
outdated and facing production bottlenecks frequently.

(iii) Lack of innovative designing and designers

In today’s stiff competition, innovation is must. Customers demand new things new
designs new innovations all the time. Innovation is one of the competitive advantages
for any business. The saree weavers of the study area are lacking innovative designs
[9][18] in sarees due to which they are losing the market demand. They are using
traditional designs which make their product less attractive as compared to products of
mill sector that are coming up with new designs all the time and trying to satisfy the
needs of the customers.

The saree weavers are not using any modern technology such as CAD and CAM [11]
for the saree designing due to which no innovative designs from them which leads to

13
rejection from the customers. Saree weavers in the study are relying on old saree
designs. Only few of the manufacturers are trying to create new designs in the study
area and there is positive response from the market for those designs.

Majority of the saree weavers in the study area are working for ‘Marwadi’ people who
provide raw material and design, according to which they have to produce the sarees.
This is also important reason for lacking in innovative saree designs.

With the rapid changes in the market, customer tastes, customer preferences and
environment as a whole, it’s suggested to change in the saree designs to survive in the
market.

It is observed that majority of the Belagavi saree weavers are not changing the designs
of their sarees as per the market demand rather using old designs and fail to attract the
customers. Neither they are employing any innovative expert designers nor using any
modern technology such as CAD nor CAM programmes for designing the sarees. They
rely on their traditional designs and not willing to change their existing designs as it
costs more and cost of production will increase.

(iv) Availability of Skilled Labor

Labour is the most important element in the power loom industry. But today, thousands
of power loom units in India are facing extreme shortage of skilled man power [12].
Same scenario we can see with respect to the power looms in the study area. The
scarcity of skilled labours causes low productivity and underutilization of production
capacity in the plant.

It is observed during the survey that the small power loom units are employing their
family members for the production as the number of looms will be very less. But the
other saree manufacturers who have a greater number of looms are facing difficulty in
getting skilled labours on time as family members are not sufficient for the production
work. The overall scenario shows that 2/3rd of the saree manufacturers are facing the
challenge of skilled labours availability.

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The major causes for scarcity of skilled labours are:

1. Migration of workers
2. Lack of interest and willingness among the younger generation to work in
powerlom units

3. Lack of proper training

4. Others

As there is a demand and supply gap in skilled labours, workers/labours in the saree
manufacturing units are in a strong bargaining position. They demand for increase in
the salary and in some units, workers demand for advance amount to work on the looms
along with increased salary. The advances taken by the labours will not be refunded
until he/she is working with the unit and there are many instances of refusal of refund
of advance amount taken from the owner. Due to such things saree manufacturing
owners are suffering.

Rise in the wages of labours lead to increase in the cost of production of sarees and fall
in the profit margin to the owners. Skilled labours are demanding hike in wages and
perks which leads to increase in the cost of production and profit margin remain the
same as mill sector products are available at less prices in the market.

Belagavi saree weavers are facing huge scarcity of skilled and trained labours for saree
production. Skilled labours are demanding hike in their salary and perks. Some labours
demand for advance money along with increase in the salary. Shortage of skilled
workforce is the biggest challenge for the saree weaving units in Belagavi.

(v) Inadequate Power and Water supply and costs

Power is must for the functioning of power looms as they run on power. Majority of
the power loom cluster areas of the country are facing the challenge of low electricity
supply [13][18], irregular supply of power due to which power loom owners are unable
to run their businesses smoothly. Due to shortage of power they are not able to meet
the production target and they are losing the orders. Due to low supply of power
weavers are not utilizing their production capacity fully and labors are also sitting idle.
They are experiencing frequent interruption in power supply [14] which is biggest
headache for them as they are unable to utilize the production capacity and labors.

15
The cost of electricity is increasing every year. Government is giving subsidy for which
power loom owners need to submit many documents and the procedure is lengthy, time
consuming and hectic.

The power looms in the study area are facing problems of high rate per unit of electricity
and shortage of electricity. The rate per unit of the electricity (power) is high for the
power loom industries apart from that there is load shading of electricity daily in the
study area.

Besides the budget, occasionally the electricity charges are increased two or three times
in a year and it are intolerable for power loom owners. Due to the increase in the cost
of production of cloth the industry suffered huge losses.

In Belagavi, saree weaving power loom units are facing the challenge of shortage of
power and water supply and frequent power cut and high rate of electricity from the
Government. They are asked to submit many documents for subsidy for electricity.

(vi) High Maintenance costs

Power loom owners in the study area are working with more than 10-15 years old plain
looms which are obsolete and outdated. During survey, it was found that majority of
the power loom owners are having old plain looms only. These old and outdated looms
create bottlenecks in production of sarees as they breakdown very frequently. Due to
this problem, power loom owners are not able to meet their production target and not
able to maintain the quality of the product.

These old looms incur higher repair and maintenance cost as they are outdated and
obsolete. Spare parts are also not available as the manufacturers have stopped producing
these kinds of looms long back.

In the study area majority of the saree weaving power loom owners are using old plain
looms which are outdated and frequently stop working. Due to old and outdated looms,
the owners are incurring more maintenance cost for their looms.

1.5 Major Challenges in Marketing of Belagavi Sarees

Marketing is one of the major challenges for Belagavi Sarees due to changing market
environment like globalization, industrialization and mechanization. They are facing

16
many marketing issues [15], marketing problems [16] and even problem with
marketing practices as they are totally unaware of marketing system.

During the survey, it was found that the power loom industry of Belagavi is absolutely
unaware of marketing organization. All the loom owners, either big or small, sell their
products on their own and face risk. There are few co-operative societies of power
looms. Their role is passive as far as the marketing organizations are concerned.

The major challenges are listed below:

(i) Lack of awareness about marketing networking

Marketing networking is a distribution network which is very much necessary for

building the business. Marketing network is very much essential for any business unit
for circulation of their products in the market i.e. to ultimate consumer.

In the study area it is found that there is no marketing network as such for the sale of
the final product as the final product i.e. sarees are sold to middlemen specially
‘Marwadis’ as they only provide the raw material and designs.

The saree weavers are not aware about the marketing network as they are not in direct
contact with the consumer. They are not conducting market survey also as such due to
which they are not aware about the market and customers.

Due to lack of awareness about marketing network the saree weavers are not able to
earn sufficient profit on their products as they are selling the product to middlemen.
They don’t have any strong bargaining power in the market as middlemen are more
dominant. Even some incidents are seen in the study area where small saree weavers
take the raw material from the middlemen and weave the saree as per their (middlemen)
specification and give it back to them only and they get weaving charges per saree.

Saree weavers in the study area are not aware of marketing networking due to which
they are struggling to sell their sarees in the market. They are working for middlemen
i.e. ‘Marwadis’ because of which there is no existence of any brands for their sarees.

(ii) Non-existent marketing channels

17
In Belagavi power loom weavers produce mainly sarees along with other products.
They mainly concentrate on saree because they are doing the same work since their
ancestral period as they are well known about the saree and very convenient to them.

In Belagavi district there are no such marketing channels [17] existed for the sale of
sarees directly to consumers. The saree manufacturers sell their sarees to middlemen or
commission agents specially ‘Marwadis’. There is no direct contact between the
manufacturer and the final consumers for the sales transaction.

Marketing channels are not existed in the study area as the saree weavers produce and
sell the sarees to the middlemen i.e. ‘Marwadis’. Because of this, middlemen are
exploiting the saree weavers. Saree weavers are not getting appropriate/rational price
for their product i.e. saree.

There are no any marketing channels existed in Belagavi for the sale of sarees produced
by the saree weavers of Belagavi. They take raw material from the middlemen and
weave sarees as per the designs provided and return to the middlemen for which they
receive payment.

(iii) Diminishing demand for sarees [18]

Sarees in India have been worn since long period of time. Although, in recent days the
preference is changing due to the influence of other cultures. The saree is very popular
in south and west and less popular in other parts of the country.

In India the demand for sarees is decreasing in recent days because of change in the
lifestyle of the individuals. Today’s youth has craze about the western culture and so
they are interested to wear western dresses rather than the traditional saree. Indian girls
are more interested to wear ladies’ suit as it is trend. They are not interested to wear
saree for the office. It’s all because we accept the other culture in short period of time
and promote the same.

Currently saree will be in demand only during the marriage season and festival season.
The demand for the saree has decreased only in metro cities because of changing
preferences, life style and may be due to change in the role of women as they are
working in offices along with managing family.

18
Indian women may be interested to wear varieties of outfits but nothing can be replacing
the saree as it is not just attire but it is the soul of Indian women. The decrease in the
demand for the saree is just is temporary which can be changed.

The saree weavers in the study area are facing the challenge of decrease in the demand
for sarees. Demand for the sarees has reduced due to change in the life style of people,
changing customer taste, availability of substitutes in the market etc.

(iv) Changing Government Policies [19]

Government policies play very crucial role in the growth of any business and power
loom is not an exception for this. The Government has reserved most of the products
for the handloom sector but no such reservation for the power loom sector. This policy
of Government creates the biggest challenge for the sector and made the sector exposed
to the severe competition.

There is no control of the Government on the prices of the raw material (yarn) due to
which power loom business owners are incurring loss as the raw material suppliers are
exploiting the small units.

Recently, the Government has imposed GST on power loom products. Presently the
GST on yarn is 12% and 5% GST is there on trading and power loom. This policy of
Government has posed the challenge for the saree weavers of the study area as it
increases the cost of production.

Saree weavers of power loom sector are facing stiff competition from the mill sector as
there are no reservations for the saree weavers like handloom products. Some of the
Government’s policies/schemes are not known to the saree waivers in the study area as
majority of the owners are illiterate or less literate. They are not aware of the
Government schemes/policies and even they don’t know the procedure of applying for
the schemes. They are not aware about the benefits of any Government schemes. They
even don’t know how to take advantage of Government policies.

The power loom weavers are generally ignorant about the various schemes
implemented for their welfare. In addition to this, many Government departments and
executing agencies also experience inadequate awareness and knowledge, making
policy formulation unproductive because of no implementation. The formulation of

19
policy and schemes in isolation will not be able to boost growth, until the understanding
of the weavers regarding these initiatives is not strengthened.

Frequently changing Government policies are affecting the smooth functioning of

power loom units of Belagavi which are manufacturing saree. Due to change in tax
structure, marketing policy, lack of control over suppliers has affected the saree
weaving power looms very badly in the district.

(v) Huge competition from Imports and Branded sarees

Belagavi sarees fail to survive against imported and branded sarees because of huge
competition in the domestic market. The domestic saree manufacturers are facing stiff
global challenge as the sector is open to global market.

Belagavi saree weavers are not able to compete with imported and branded sarees in
the market with respect to quality, trending designs, verities, combinations, price,
technology and many more aspects. The main drawback of Belagavi saree is non-
existence of brand due to which the weavers are facing huge competition from imported
and branded sarees and facing sustainability and survival problem.

Another drawback of domestic saree weaver is that competitors are imitating the
products and designs as the power loom owners do not have any copy right on their
product or designs. It is the biggest headache for all the saree weavers as they do not
have any registered brand for their sarees.

Domestic sarees in India are facing tuff competition from imported sarees and major
brands such as Manyavar-Mohey, Meena Bazar Odhni etc which are dominating the
ethnic wear industry in India.

Open market policy practice of the Government has opened the country to Indian
sarees. Imported and branded sarees for their cheaper prices, varied designs &
availability usually attract more local buyers. So gradually the sale is declining.
These imported and branded wearing stuffs are more attractive as compared to
local/domestic sarees. These sarees are good looking as they have latest designs with
modern art of embroidery. The quality of imported and branded sarees is far superior
compared to domestic sarees as they use latest technology to manufacture the sarees.

20
Similar challenges have been identified by the various studies undertaken on the power
loom sector in other parts of the country especially in Maharashtra and Tamil Nadu and
other states.

1.6 Research Gap

To support the above challenges faced by the saree weavers in the study area, following
review of literature gives us a glance on the study done by various academicians,
research scholars, authors etc.

Rani and Thilagavathi’s (2017). Study focused on problems of power loom industries.
The surveyed data shows that some problems are facing by power loom industries like
financial, environmental and raw material problems.

Hajgolkar and Talwar’s (2017). Study focused on performance of Power loom

entrepreneurs in Belagavi city. The studies with smart city project and According to the
study around 45% of power loom units are producing sarees. Researchers suggested for
technological improvements in their units.

Kudachimath and Mahantshetty (2017) study on decentralized power loom industries

showed an upward trend towards growth particularly in employment generation and
production. Researchers opinioned that industry generates employment to both skilled
and unskilled man power and there is a positive relation between the power loom
sector and GDP.

Suresh and Mangalam (2016), attempted to evaluate the functioning of Power loom
industry and the features influenced on successful operation of Power loom industries
in Tamailnadu. The primary data collected through the entrepreneurs of power loom
industries in study area. The researchers opinioned that the machinery they are using
almost obsolete in nature and technology should be improved among the power loom
entrepreneurs.

Chaudhary, Saini, and Solanki (2015), attempted to understand the different problems
of Handloom& power loom industries in Uttar Pradesh. The researchers opinioned that
there is no appropriate marketing method in the handloom & Power loom Industries
in Uttar Pradesh and the price of the yarn and fabric always fluctuates. Authors are
argued that the middle man play critical role in marketing factors, in fact they enjoying
the main profit.

21
Rahman, Mukul and Anny (2014), studied on socio economic status of businessmen
those are engaged power loom business of Sirajgonj district of Bangla. Researchers
opinioned that the industry is moving slowly and they have identified various reasons
for slow down of the industry. The reasons are like shortage in skilled man power,
cost of raw materials, electricity supply.

K. Shanmuga and SundaramM. Prakas, (2014), conducted a research “on Study on

impact of CAD / CAM tools on production of punched cards by Indian silk saree
designers for handloom industry”. They suggested that the design for silk sarees can
be generated using a CAD and CAM for better quality designs.

Prusty and Mallik (2013), examined the factors affecting the power loom clusters in
Odisha. Researchers were pointed out major reasons to decline of power loom industry
like Government policies, unplanned installation, infrastructure issues etc.
researchers also identified cooperatives societies are not working in study area.

Najir and Pawar (2012) in their research article “Problems and prospects of power loom
industry in Malegaon” studied about problems of power loom sectors in Malegaon.
They mainly highlighted about infrastructural and technological issues. Also, the
study highlighted on non availability of yarn and short supply of yarn. The
researchers suggested for the development of skills of labours with certain trainings to
increase the production.

Anjum and Thakor’s (2011) in their paper “An Analytical Study of the Functioning and
the Problems of the Power loom Industry in Maharashtra with Special Reference to
Malegaon Dist. Nashik” have focused on production and marketing issues of power
loom industry and highlighted on problems facing by industry workers of Malegaon of
Maharashtra state. The study recommends technological improvements and modern
marketing techniques.

In the year 2011 Vasan attempted to analyze the performance of power loom industries
in Erode District of Tamil Nadu. Investment pattern, raw materials procurement,
marketing and labor issues were discussed in his study. The author suggested need of
Government support and owners must form the clusters to support each other.

Anjum and Thakor’s (2011) in their paper “An Analytical Study of the Functioning and
the Problems of the Power loom Industry in Maharashtra with Special Reference to

22
Malegaon Dist. Nashik” have focused on production and marketing issues of power
loom industry and highlighted on problems facing by industry workers of Malegaon of
Maharashtra state. The study recommends technological improvements and modern
marketing techniques.

In the year 2011 Vasan attempted to analyze the performance of power loom industries
in Erode District of Tamil Nadu. Investment pattern, raw materials procurement,
marketing and labor issues were discussed in his study. The author suggested need of
Government support and owners must form the clusters to support each other.

Amrita Singh and Shailaja D. Naik, (2009), undertook a study on “status of Banaaras
weavers: A profile”, they focused on the problems of Banaras weavers, such as socio-
economic condition, marketing practices and other problems faced by them. They
concluded that the situation of weavers in the study area was feeble due to illiteracy,
financial constraints, marketing bottleneck and lack of Government support.

Sannapappama K.J, (2000), undertook the study on silk sarees of Molakalmuru. She
studied existing weaving technology and to analyse the economic viability of the saree
weavers in Molakalmuru in Chitradurga district. She has noticed that the designing of
sarees is also one the challenge faced by the saree weavers in the study area. She
concluded that, about 95% of the saree weavers faced the problem of poor marketing
system for their sarees.

From the summary of the above review of literature done by the researcher, it is found
that many studies have been done on micro and small enterprises, handloom sector and
power loom sector across the country. Many researchers have studied the various
problems faced by the power loom units in Maharashtra and Tamil Nadu and given
their opinion regarding general problems faced by the weavers and tried to give the
suggestions accordingly.

Certain studies have been conducted in Karnataka and tried to examine the various
general problems and issues faced by the power loom units and given their opinions
and recommendations but no studies have been carried out particularly on the
challenges of power loom units in Belagavi who manufacture sarees exclusively.

Belagavi saree weavers are facing varieties of challenges among which challenges in
production such as scarcity of raw material, inferior quality of raw material, lack of

23
skilled labour, lack of production infrastructure and challenges in marketing of sarees
such as lack of awareness about marketing networking, absence of marketing channels
and competition from imported and branded saree are very crucial and playing
important role in the performance/success of power loom units.

Therefore, there is a research gap and need for studying various challenges in
production and marketing of Belagavi sarees faced by the saree weaving power loom
units which fall under micro and small enterprises.

1.7 Need for the Study

In spite of the significant contribution made by the power loom industry in terms of the
economic and social development of the nation, the power loom owners are suffering
from intrinsic operational problems in recent years, like obsolete and discarded power
looms, with little research and development facilities for any improvement. This affects
both the productivity and quality of product.

The impact of globalization is a major problem which the Government is also worried
about. Marketing is one area where the power loom industry is suffering in India. The
power loom sector is facing with many challenges in the post liberalization and
globalization period.

During post independence period, Government of India appointed many commissions

or committees to study various aspects of the textile industry from time to time. Some
research studies have been made in other states like Maharashtra, Gujarat, Tamil Nadu,
and Andra Pradesh. But these studies are related to the handloom sector and mill sector.

At the same time many researchers studied on power loom sector of Karnataka but none
of the studies have focused on Belagavi power loom units who exclusively manufacture
sarees popularly known as ‘Belagavi (Shahpur) Sarees’.

The saree weavers in the study area are facing numerous challenges in production and
marketing of their products are crucial in nature. They are affecting the functioning of
the power loom units severely in Belagavi district.

On one hand the saree weavers are facing varieties of challenges in production of sarees
such as scarcity of raw material, inferior quality of raw material, incompetent
production infrastructure, and lack of innovative designs for sarees and designers, lack

24
of skilled and competitive labours, demand for higher wages, insufficient orders on time
etc. On the other hand, marketing is a real challenge for the saree weavers in Belagavi
district. They are facing several challenges in marketing such as unaware of the word
‘marketing’ and hence they are facing several challenges such as non-existence of
marketing channels, lack of market research, huge competition from imported and
branded sarees, lack of awareness about marketing networking, Government policies,
decreasing demand for sarees etc.

These challenges have drawn the attention of the researcher and hence the topic of the
current research work encircles on these challenges. Therefore, the present study under
the caption “Challenges in Production and Marketing of Belagavi Sarees: An Empirical
Study of Micro and Small Enterprises in Power loom Industry of Belagavi District”
presumes importance of power looms as an intensive micro level study. This fact is also
evident from the review of the literature of the research work relating to power loom
units and SSI units undertaken so far.

1.8 Statement of the Problem

The textile industry contributes to 7% of industry output in value terms, 2% of India’s

GDP and to 15% of country’s export earnings. Karnataka is not exception to this, since
independence the contribution of small-scale sector in terms of industrial production
and employment generation to the economy of Karnataka is huge. The small-scale
textile industry plays a significant role in the creation of employment. There is vast
potentiality in the creation of employment opportunities especially in rural and
backward areas of Karnataka. The decentralized power loom sector is one of the most
important segments of the textile industry in terms of production and generation of
employment. In Karnataka state the Belagavi district is hub of power loom sector and
created lot of employment opportunities in this area. According to power loom service
centre Belagavi there are 20,384 power loom units are functioning in Belagavi district.
The main production of power loom units of this district is sarees. More than 16,000
power looms units are manufacturing sarees in Belagavi district.

The present Study intends to look analytically into the Power loom industry of Belagavi
district of Karnataka state. This study attempts to study the challenges faced by the
power loom industries of Belagavi city particularly in production and marketing of
sarees.

25
Research Problem: The fundamental research problem of this study is to identify the
challenges in production and marketing faced by the saree weaver’s in Belagavi district.

The present study attempts to focus on the general research question "what are the
challenges in production and marketing off sarees faced/facing by the saree weavers of
Belagavi District?" which in turn broken down into the following sub questions:

1. What are the challenges in production of sarees faced by the saree weavers in
Belagavi district?
2. What are the labours related issues faced by the saree weavers in the study area?
3. What are the infrastructural problems faced by the Belagavi saree weavers?
4. What are the major challenges in marketing faced by the saree weavers in
Belagavi district due to which they are unable to sell their sarees directly to the
end users?

The Title of the Study: Belagavi (Shahpur) saree is popular saree in Karnataka. It has
its own identity in the minds of feminine due to its quality, price, colour etc. But today
saree weaving units in Belagavi district are facing various challenges/problems such as
scarcity of skilled labours, outdated technology, lack of awareness about Government
schemes, lack of marketing channels etc which are responsible for the slow growth of
the industry. In this view the researcher has decided to study the challenges in
production and marketing which are being faced by these saree weavers which are
affecting the smooth functioning of the business in the era of globalization. Hence, the
researcher has coined the title of the topic as “Challenges in Production and Marketing
of Belagavi Sarees-An Empirical Study of Micro and Small Enterprises in Power loom
Industry of Belagavi District”.

26
1.9 Objectives of the Study

By keeping in mind, the title of the study and the challenges faced by the saree weavers
in Belagavi district, the researcher has laid down the following objectives for the study:

1. To analyze the challenges in production of sarees encountered by Micro and

Small Enterprises in Power loom Industry of Belagavi District.
2. To ascertain the challenges in marketing of sarees faced by Micro and Small
Enterprises in Power loom Industry of Belagavi District.
3. To appraise the status of infrastructure of Micro and Small Enterprises in Power
looms of Belagavi District
4. To assess the labor related challenges faced by Micro and Small Enterprises in
Power looms of Belagavi District.
5. To propose suitable suggestions based on the findings of the study for the
development of Micro and Small Enterprises in Power loom Industry of
Belagavi District.

1.10 Research Hypotheses

On basis of the objectives set for the research, the review of literature and on the basis
of discussions with experts and saree weaving unit owners and other stakeholders, the
following hypothesis have been planned by researcher scholar:

1Ho: There is no significant difference in the opinion of the Power loom units about the
challenges in Production of Belagavi Sarees.

2Ho: There is no significant difference in the opinion of the Power loom units about the
challenges in Marketing of Belagavi Sarees.

3Ho: There is no significant difference in the status of Infrastructure of Micro and Small
Enterprise Power looms of Belagavi District and that with the standards.

These composite hypotheses have been broken down into sub-hypothesis based on the
various challenges taken for the study in Chapter 4 in detail.

1.11 Research Methodology

The present Study will bring to light challenges in production and marketing of
Belagavi sarees produced by Micro and Small Enterprises in power loom industries of
Belagavi city. The Methodology for the Study will be descriptive in nature and is

27
composed of personal interview with structured interview schedules to bring out the
insights of power loom industry owners. However, the methodology followed in the
present study is presented as follows:

Area of the Study:

The geographical location of the present Study is confined to the Belagavi District of
Karnataka state covers an area of 13,415 square kilometers accounting to 6.99 % of the
total geographical area of the state inhabiting 6,11,30,704 inhabitants according to 2011
census. Belagavi District is comprised with 10 talukas having 18 municipalities, 22
towns, 35 Hoblies, 485 Gram Panchayats having 1,270 Villages with Kannada being
the official language.

Sources of Data Collection

Secondary Data

Secondary data for the Study were collected through Journals, Annual reports, Articles,
Research Reports and also the libraries of Karnataka University, Dharwad, Rani
Channamma University, Belagavi, KLS Gogte Institute of Technology, Belagavi, KLS
Institute of Management Education and Research, Belagavi and Bharatesh Education
Trust’s Global Business School library. Even the websites of Textile ministry, Statistics
of India and the websites of various states supported during the process of the data
collection.

Primary Data Collection

The analysis of the present study depends upon both primary as well as secondary data.
In order to test the hypothesis, the data were collected from primary and secondary
sources. The required primary data was collected from discussions, observations and
interviews. Structured interview schedules i.e. questionnaires were administered to the
respondents i.e. owners of Power loom industry during pilot study to test the reliability
and validity of tool and relevance of the questions. On the other hand, telephonic
interviews and discussions were also conducted to fine tune the information collected.

28
Sample Frame and Sampling Technique

In Belagavi district there are 20,384 power loom units are functioning and 16,308 units
are manufacturing sarees (fancy/polyester sarees) as on 10th April, 2020. A sample of 5
% (i.e. 390 Units) was selected by using Convenience Sampling, comprising micro and
small enterprises in power loom industry. Since the population is known, the sample
size is determined by using Yamane’s formula.

Yamane’s formula

In the study area

along with sarees other products are being manufactured by the power loom units in
Belagavi district. After careful examination of the population, convenience sampling
technique was used to select the sample out of total population of 16,308 power loom
units in the study area. According to Power loom Service Centre, Belagavi, 10 talukas
of Belagavi district are divided into two (2) clusters namely Belagavi cluster which
comprises 6 talukas and Chikodi cluster which comprises 4 talukas. Sarees are
manufactured only in Belagavi cluster which has 16,308 power loom units. During the
survey it is found that, in study area some of the power loom units manufacture other
products such as dhoti, white cloth along with sarees. Due to this it was difficult to
choose the sample which manufactures sarees exclusively. Due to this difficulty, the
researcher has selected convenience sampling technique to choose the sample to carry
out the research work.

1.12 Questionnaire

A questionnaire consisting of questions explaining the challenges faced was circulated

among the respondents i.e. the owners of power loom who manufacture sarees in study
area. The data collected includes both demographic information of the respondents and
also the challenges faced in production and marketing of Belagavi Sarees. The
questionnaire for my research consists of three (3) major parts. They are presented
briefly as shown below:

Part A: Part A of the questionnaire was planned in order to gather the demographic

Profile of the respondents in the study area.

29
Part B: Part B of the questionnaire consists of the questions related to the challenges
in production of sarees faced by the saree weavers in Belagavi district.

Part C: This part of the questionnaire consists of the questions related to challenges in
marketing of Belagavi sarees by the saree weavers in the study area.

1.13 Analytical Techniques used

Based upon the objectives of the Study along with nature and extent of availability of
data, the following tools and techniques were adopted to analyze the data.

The data so collected from the survey by using questionnaire is then accumulated into
tables by using Microsoft Excel and SPSS software. Simple descriptive statistical
analysis tools and techniques like percentage, mean, standard deviation; ANOVA etc.
have been used to test the hypothesis in the research study. The analyzed information
is then presented by using various forms of charts.

1.14 Variables included for the study

“Variable is a property that takes on different values''. It is also a logical grouping of

attributes. Attributes are characteristics or qualities which is describing an object. If
‘gender is a variable’ then “male and female” are the attributes. If ‘residence’ is the
variable then “rural, urban, semi urban” are the attributes. So, the variable, as a layman
statement is “something that can change and or can have more than one value”

In the study area i.e. Challenges in Production and Marketing of Belagavi Sarees: An
Empirical Study of Micro and Small Enterprises in Power loom Industry of Belagavi
District”, the researcher carried out with following variables:

Variables under Study

1. Production of Belagavi Sarees 11. Working infrastructure
2. Marketing of Belagavi Sarees 12. Availability of skilled labour
3. Age 13. Government policies
4. Gender 14. Marketing Channels
5. Education level 15. Marketing networking
6. Investment in Business 16. Market Demand
7. Source of Investment 17. Imported and branded sarees
8. Number of looms owned
9. Average Annual Income &
Expenditure
10. Raw Material

30
1.15 Scope and Limitation of the Study

Power loom sector is one of the most important sectors of the textile industry in terms of
production and employment. It provides employment to 44.18 lakh persons as per M/S Nielson
Baseline power loom survey conducted during the year 2013. This segment contributes 57%
of total cloth production in the country. More than 60% of fabric meant for export is also
sourced from power loom sector. In spite of Government intervention through financial
assistance and implementation of various developmental and welfare schemes, this sector has
not been able to withstand competition from the Branded power loom and mill sectors. In order
to leverage the vast potential of this vibrant industry, it is critical for the Government and
Industry to work towards addressing key challenges like obsolete machinery and technology,
threats to handloom sector, power shortage, illicit markets and labor related concerns, excise
duty on manmade fibers, raw materials shortage and lack of quality infrastructure in non-
metropolitan cities.

Today this industry faces a large number of problems including those relating to production
and marketing of sarees. Effective marketing is of utmost significance for the survival of this
sector and so there is vital significance for this aspect. One of the biggest challenges that these
power loom businesses in the country are facing is the competition from Branded and
Medium/Large scale industries, in terms of economy, investment, working capital, tax structure
and mainly marketing.

The study area is restricted to Belagavi District of Karnataka State due to time and cost
restrictions faced by the researcher in studying the power loom sector. Besides that, the focus
of the problem of research is on Belagavi Saree as a product of interest, which is predominantly
woven in the Belagavi district only. Whereas other places of North Karnataka such as
Rabakavi, Banahatti and Ilkal also have large number of weavers weaving with power looms.
Whereas the type of the saree from Ilkal is known to be “Ilkal Saree” with difference in raw
material used, quality and as well as design. So also, the sarees woven in Rabakavi and
Banahatti. Therefore, the researcher has chosen Belagavi District as a geographical region for
this study. Hence, the scope of the study is restricted to Belagavi District. Whereas the
challenges faced by the small and medium power looms of the other places of the sate have
also pretty similar barring one or two challenges. Therefore, the findings are applicable to the
whole state and the country. This Study throws light on the prevailing problems and challenges
facing by power loom sector which will help them to improve their strategies and techniques

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to frame the marketing activities. The findings of the Study, would be quite useful for Policy
makers, Planners, Administrators and Researchers and also to a large numbers of power loom
units.

This Study is conducted though sufficient time, resources and care has been deployed by the
researcher the Study is amenable to limitations. The success of the Study requires the
cooperation and the information given by the power loom owners. The power loom industries
produce various products such as, cotton fabrics, dhotis, sarees, and other items, the major item
saree alone is considered for the study.

The geographical scope was restricted to Belagavi District covering that to considering only
Saree weavers. Only power loom owners have been considered for the study. This study has
not considered labours, and other workers of the power loom units.

1.16 Organization of the Study

The First Chapter being an Introductory in nature starts with Background, overview of Textile
industry, Textile industry in India, Power loom industry in India, Power loom industry in
Belagavi, Statement of the research problem, Objectives, Hypotheses, Methodology, Scope of
the Study, Limitations of the Study and Organization of the Study is documented.

The Second Chapter is Review of Literature which presents the review of the available
literature on the topic under study. This literature review has given foundation for this research.

The Third Chapter, titled as Power loom Industry (MSME) and Belagavi Saree –throws light
on conceptual frame work and the various dimensions of the power loom industry in the global
and Indian scenario. An attempt has been made to bring detailed information on power loom
industry and Belagavi Saree. It also includes the information about the challenges in production
and marketing faced by the saree weavers in the study area.

The Fourth Chapter is devoted to the Analysis and Interpretation of data collected through
primary collection. This chapter tests primary data with appropriate statistical techniques and
also testing of hypotheses is carried out in this chapter.

The Fifth Chapter presents Major Findings, Suggestions, and Further areas of Research.

The Sixth Chapter presents the conclusion part of the research followed by scope for further
research, managerial implication.

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Bibliography consists of various references and bibliography used for the research work
followed by Annexure and Appendices.

1.17 Managerial Implications

Based on the current research outcome, certain practical implications can be suggested to
the managers/owners of the firms wishing to improve their business performance:

1. The results focus on the importance of changing business strategies to cope up with
the changing business environment.
2. The proposed framework or results can be used as a strategic tool to transform the
traditional business format into modern business unit.

1.18 Conclusion

In present competitive and technological world, the global trade has become complex and it
requires applicable study of trends, economical issues, political situation and forecasting.
Power loom industry is not exceptional for this. It needs constant innovations and research for
its development. Investment on quality control is need of the day and industry has to grab new
opportunity to prove in this world. The contribution of power loom industry to the country’s
economy and development has been huge. Changing lifestyles, growing fashion, and increasing
urbanization are set to make better to this sector in coming days. Also, the sector has vast
potential to attract the excess labor available in the country.

Despite huge competition from branded sarees, the Belagavi Saree has been retaining its mark
and existence in the local saree market. Due to its low cost, new designs and quality of the
weaving it has made a thorough mark in the minds of the saree consumers of the state and
around places despite big challenges surrounding it. Based on the current study, it is concluded
that there is a need to have a comprehensive market strategy and technological support from
the Government for ensuring sustainable growth of power loom industry. It is necessary to
understand the serious problems (related to market, labour etc.,) prevailing in the small-scale
power loom industry of Belagavi. Also, the various Government schemes implemented for the
development of the small-scale power loom industry of Belagavi who manufacture sarees need
to be popularized among weavers and to be made best use of them. There is a need by the
Government to address the issues related to price of raw material, labours, non-existence of
marketing system and deficiency in infrastructure.

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